Method of accounting for inventory in a retail store
1 Which method of accounting, periodic or perpetual, for inventory would you choose for a retail store that you managed. Make your choice and explain why you made it. Narratives about your prior or current experience with inventory are welcome.
2 With the adoption of international accounting standards, the LIFO inventory cost flow assumption will most likely be eliminated. Do you believe that LIFO should be eliminated? Make your choice (yes or no) and explain why you made it. Narratives about your prior or current experience with inventory are welcome.
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1. Which method of accounting, periodic or perpetual, for inventory would you choose for a retail store that you managed. Make your choice and explain why you made it. Narratives about your prior or current experience with inventory are welcome.
For inventory, the perpetual system is superior in many ways, but not always practical for a small business. To have a good system using the perpetual method, requires the purchase and installation of POS software and registers capable of running the software. POS means 'point of sale' and it accomplishes several objectives at the same time.
With POS working and with trained employees as to how to use it, each time a sale is rung up, ...
Solution Summary
The 467 word cited solution explains the concepts for inventory in detail including a good discussion about the death of LIFO.
... Companies that use this method include car dealerships, jewelers ... For the periodic inventory system, the company usually ... until the end of an accounting period to ...
... are excerpts from a recent top management meeting at Princess Retail Stores. ... I suggest that we look for an inventory accounting method that achieves this ...
... 4. Compute ending inventory at lower-of-cost-or ... The solution examines accounting for the Smashing Pumpkins Company ... uses the lower-of-cost-or-market method, on an ...
... The company also practices accrual method of accounting in its financial reports ... that the company uses last in first out the method in its inventory and that ...
... Wal-Mart uses LIFO to account for its ... Average inventory (throughout the year) $34,433 Current Assets (at ... the following measures based upon the LIFO method: ...
... Dwight uses the periodic method. ... The following independent situations relate to inventory accounting. Answer each of the questions below about inventories. ...
... What is the significance of accounting for inventories? ... consider accounting for inventory at amounts ... of sophisticated cost accounting techniques and supporting ...
... page F-11) They explain that this method requires some ... can understand the disclosures for cash, cash equivalents, accounts receivable and inventory. ...
